Quantum Fintech Acquisition (Quantum Fintech Acquisition) ROC % : -9.99% (As of Sep. 2023)

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What is Quantum Fintech Acquisition ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Quantum Fintech Acquisition's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -9.99%.

As of today (2024-05-28), Quantum Fintech Acquisition's WACC % is 10.42%. Quantum Fintech Acquisition's ROC % is -1.05% (calculated using TTM income statement data). Quantum Fintech Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Quantum Fintech Acquisition ROC % Historical Data

The historical data trend for Quantum Fintech Acquisition's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Quantum Fintech Acquisition ROC % Chart

Quantum Fintech Acquisition Annual Data

Trend

Dec20

Dec21

Dec22

ROC %

-3.30

-1.41

Quantum Fintech Acquisition Quarterly Data
	Oct20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial							-1.27	-0.83	-1.18	-2.47	-9.99

Quantum Fintech Acquisition ROC % Calculation

Quantum Fintech Acquisition's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-3.024 * ( 1 - 4.64% )	/	( (205.874	+	204.525)	/ 2 )
=	-2.8836864	/	205.1995
=	-1.41 %

where

	Invested Capital		(A: Dec. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	201.711	-	2.643	-	( 0.063	-	max(0, 7.209	-	0.403	+	0.063	))
=	205.874

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	204.208	-	5.133	-	( 0.13	-	max(0, 5.613	-	0.163	+	0.13	))
=	204.525

Quantum Fintech Acquisition's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-2.564 * ( 1 - -122.61% )	/	( (57.89	+	56.348)	/ 2 )
=	-5.7077204	/	57.119
=	-9.99 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	58.622	-	8.635	-	( 1.133	-	max(0, 9.115	-	1.212	+	1.133	))
=	57.89

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	54.79	-	9.192	-	( 0.713	-	max(0, 11.565	-	0.815	+	0.713	))
=	56.348

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

Quantum Fintech Acquisition (AMEX:QFTA) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Quantum Fintech Acquisition's WACC % is 10.42%. Quantum Fintech Acquisition's ROC % is -1.05% (calculated using TTM income statement data). Quantum Fintech Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Quantum Fintech Acquisition ROC % Related Terms

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Quantum Fintech Acquisition (Quantum Fintech Acquisition) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Quantum Fintech Acquisition Corp (AMEX:QFTA) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

4221 W. Boy Scout Boulevard, Suite 300, Tampa, FL, USA, 33607

Website

https://www.qftacorp.com

Quantum Fintech Acquisition Corp is a blank check company.

Executives

Cable Car Capital Llc	10 percent owner	2261 MARKET STREET #4307, SAN FRANCISCO CA 94114
Jacob Ma-weaver	10 percent owner	2261 MARKET STREET, #4307, SAN FRANCISCO CA 94114
Funicular Funds, Lp	10 percent owner	2261 MARKET STREET, #4307, SAN FRANCISCO CA 94114
Sandip I Patel	director	C/O QUANTUM FINTECH ACQUISITION CORP, 4221 W. BOY SCOUT BLVD., SUITE 300, TAMPA FL 33607
Richard Korhammer	director	C/O QUANTUM FINTECH ACQUISITION CORP, 4221 W. BOY SCOUT BLVD., SUITE 300, TAMPA FL 33607
John Schaible	director, officer: Chairman and CEO	C/O QUANTUM FINTECH ACQUISITION CORP, 4221 W. BOY SCOUT BLVD., SUITE 300, TAMPA FL 33607
Quantum Ventures Llc	10 percent owner	4221 W. BOY SCOUT BLVD., SUITE 300, TAMPA FL 33607
Miguel Leon	director, officer: Chief Financial Officer	C/O QUANTUM FINTECH ACQUISITION CORP, 4221 W. BOY SCOUT BLVD., SUITE 300, TAMPA FL 33607
Daniel V Caamano	director, officer: President	C/O QUANTUM FINTECH ACQUISITION CORP, 4221 W. BOY SCOUT BLVD., SUITE 300, TAMPA FL 33607
Steven J. Carlson	director	C/O QUANTUM FINTECH ACQUISITION CORP, 4221 W. BOY SCOUT BLVD., SUITE 300, TAMPA FL 33607
Thomas Jon Hammond	director	C/O QUANTUM FINTECH ACQUISITION CORP, 4221 W. BOY SCOUT BLVD., SUITE 300, TAMPA FL 33607